FEATURE
Breakthrough by NISSIN YORK and KOIKE-YA with High-Value-Added Products
Two NISSIN FOODS Group brands, NISSIN YORK and KOIKE-YA, have captured emerging needs in society through high-value-added products. In FY 3/2023, the efforts of these brands paid off, supporting the domestic business amidst rising material costs and contributing to the overall revenue and profit growth of the group. Here, we spotlight the initiatives of both companies.
Initiatives by NISSIN YORK
Amid a Surge in Health Consciousness, There Has Been a Growing Demand for Probiotic Beverages
The recent boom in the probiotic beverage market has propelled NISSIN YORK's impressive performance in FY 3/2023. A significant factor behind this success was the strong sales of PILKUL 400, which launched in 2021. Even amidst price revisions, the brand's first TV commercial in nearly 30 years helped significantly boost sales.
Another factor behind the strong performance is PILKUL MIRACLE CARE. Launched in September 2022 and marketed for its ability to improve sleep quality and reduce daily fatigue, the product has sustained excellent sales. Despite rising material costs, the strong performance of both PILKUL 400 and PILKUL MIRACLE CARE, along with the TOKACHI DRINK YOGURT, contributed to increased revenue and profit for NISSIN YORK in FY 3/2023.
At the heart of NISSIN YORK's flagship PILKUL series is the unique NY1301 strain of lactic acid bacteria developed by the company. This probiotic is proven to survive through to the gut, enhancing the intestinal environment. NISSIN YORK has focused on the gut-brain axis, the bidirectional communication network of the brain and gut, to advance research on NY1301's benefits in improving sleep quality and reducing daily fatigue. Results have made it clear that this strain can enhance sleep and alleviate fatigue in healthy adults. Sales are thriving, and we are dedicated to communicating the sustained benefits of PILKUL as a daily health product, ensuring it's not just a fleeting trend.
Changes in Sleep Score with PILKUL MIRACLE CARE
Changes in Fatigue Score with PILKUL MIRACLE CARE
Source: Japanese Pharmacology and Therapeutics, 49 (12): 2135-2148, 2021. (Participants: 154 healthy adults [ages 20-65] with a sense of fatigue / Test conditions: Daily intake of either PILKUL MIRACLE CARE (65ml) containing lactobacillus NY1301 or a placebo beverage / Duration: 12 weeks) Quality of sleep and feelings of fatigue were assessed using a visual analog scale (VAS)
MIHOKO INUKAI
Head, Marketing
Department
NISSIN YORK CO., LTD.
Our High-Value-Added Strategy Pays Off
In FY 3/2023, amidst robust sales of the PILKUL 400 series and TOKACHI DRINK YOGURT, the addition of PILKUL MIRACLE CARE contributed to an increase in revenue and profits. The PILKUL 400 series has been marketed using advertising and collaborations that appeal to both children and their parents, the serie's target demographics. Despite challenging external conditions such as rising material costs, the launch of high-value-added products such as PILKUL MIRACLE CARE has elevated overall brand value and synergistically boosted sales of existing products.
Initiatives by KOIKE-YA
Establishing a Premium Identity Through KOIKE-YA's Distinctive Rebranding Strategy
In FY 3/2023, sales were strong, led by high-value-added brands. This success is attributed to KOIKE-YA's distinctive approach to branding. This unique approach and focus on high-value-added products has greatly expanded sales by daring to develop and bring new products to the market. Despite cost increases due to rising material prices, the brand's sales thrived, and strategic price revisions proved effective, culminating in a profitable fiscal year.
In September 2023, the PURE POTATO brand, a leader among high-value-added products, underwent a comprehensive renewal. Along with the refresh, the brand name was streamlined from PURE POTATO JAGAIMO GOKOCHI to simply PURE POTATO. The flavor profile of our thick-cut potato chips also evolved significantly by adopting a novel process using a special oil that brings out the potato's inherent richness and sweetness, thereby offering a richer, more profound flavor experience.
For an advertising campaign, the company tapped actor Ryusei Yokohama to enhance brand loyalty among existing users and attract new ones. Yokohama was chosen for his widespread appeal across various demographics and his alignment with the brand's image. Director Michihito Fujii was also brought on board for a novel approach that eschewed traditional ad production, with Yokohama, Fujii, and KOIKE-YA collaborating as a unified team from concept to execution. This collaboration resulted in the series “As Pure As They Come.” The campaign unfolded with the cinematic beauty and scale of a short film, successfully personifying the PURE POTATO brand and stirring consumer emotions, which played a key role in the brand's successful re-launch.
Going forward, we will continue to push the expansion of high-value-added brands like PURE POTATO, aiming to grow sales and improve profit structures. In response to shifts in consumer mindsets post-COVID and the evolving array of food-related needs, we are embracing a strategy of “continuous discontinuity,” challenging ourselves to develop and offer innovative products that break new ground.
PURE POTATO Series
As we celebrate the 5th anniversary of the PURE POTATO series, we
have carved out a niche in the potato chip category that delivers an overwhelmingly authentic potato
experience.
We are committed to continuous growth, aiming for even greater progress going forward.
MISA ARAIDirector, Market Division, Marketing
Department
KOIKE-YA Inc.
Strengthening Our Brand for the Modern Era
In 2022, we revamped our long-standing brands, SUCORN and DON TACOS. With SUCORN, we embraced the concept of modernizing the brand and moving away from the “junk” label, retaining its rich flavor profile while revamping the texture with a lighter dough that leaves you wanting more. By updating our products to match the times, we have refreshed the brand's appeal, leading to sustained growth. In 2023, we're expanding this value-added strategy to the KOIKE-YA POTATO CHIPS brand, which celebrates its 60th anniversary this year. While maintaining the beloved taste of our classic “Salt & Seaweed” flavor, we have rejuvenated the packaging design and modernized the brand, including new flavor profiles and names.
